Give Push to your Success with CIPS Level 5 Advanced Diploma in Procurement and Supply L5M10 Exam Questions [Q15-Q31]

Give Push to your Success with CIPS Level 5 Advanced Diploma in Procurement and Supply L5M10 Exam Questions

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CIPS L5M10 Exam Syllabus Topics:

Topic	Details
Topic 1	Analyse Techniques That Can Be Applied to Planning and Control in Logistics Management: This section of the exam measures skills of Logistics Planners and covers approaches for balancing planning with operational control. It focuses on methods for responding to demand variations, optimizing loading and sequencing of activities, and scheduling logistics processes to achieve smooth workflow and reliable delivery performance.
Topic 2	Critically Appraise the Use of Technology in Logistics Management: This section of the exam measures skills of Logistics Systems Analysts and explores how technology enhances logistics efficiency. It covers the use of coding, barcoding, RFID, and AIDC technologies for accurate tracking and data capture. The section further explains e-fulfilment processes, warehouse management systems, and how digital integration across logistics networks enables real-time decision-making and operational transparency within the supply chain.
Topic 3	Understand Capacity Planning and Control in Logistics Management: This section of the exam measures skills of Capacity Planning Managers and focuses on managing logistics resources effectively to meet fluctuating demand. It highlights how planning and control help maintain balance between available capacity and customer needs. Candidates are expected to understand various planning and scheduling methods that ensure timely delivery and cost efficiency in logistics operations.
Topic 4	Analyse the Use of Materials Requirements Planning (MRP) Systems Technology for Planning and Control in Logistics Management: This section of the exam measures skills of ERP and MRP Specialists and covers how technology supports planning and control functions in logistics. It includes the use of MRP, MRP II, and ERP systems, along with elements like master production scheduling, bills of materials, and inventory data. Candidates are also expected to understand MRP calculations and recognize the limitations of such systems in real-world logistics environments.
Topic 5	Analyse the Role and Activities of Logistics Management: This section of the exam measures skills of Operations Analysts and focuses on defining logistics and understanding its key components. It explores how logistics activities like transportation, inventory, warehousing, and information flow work together to streamline operations. The section also emphasizes how logistics supports procurement, production, and distribution, along with its relationship to broader supply chain management practices.
Topic 6	Evaluate Aspects of Competitive Advantage That Can Be Achieved Through Logistics Management: This section of the exam measures skills of Strategic Logistics Planners and focuses on how logistics can create a competitive edge for organizations. It discusses aligning logistics with business strategy, maintaining customer service excellence, and managing service levels effectively. The section also reviews methods to measure customer satisfaction, manage service lifecycles, and understand the financial outcomes of effective logistics strategies that drive profitability and market differentiation.

 

NEW QUESTION # 15
Outbound logistics describes the activities from receipt of goods to use on the production line. Is this correct?

• A. Yes - it is inclusive of warehousing and materials handling
• B. No - outbound logistics is the process of movement from the production line to the end customer
• C. Yes - it includes inventory management processes such as quality checking and stock control
• D. No - outbound logistics is the return of items from the customer, for example if they are faulty

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Outbound logisticsinvolves activities that movefinished goods from production to the end customer. The description given refers toinbound logistics(movement from suppliers to production). Returns from customers arereverse logistics.
(Reference:CIPS L5M10 Study Guide, Inbound, outbound and reverse logistics definitions, p. 4)

NEW QUESTION # 16
Which pieces of information would you require to calculate aBOM explosure? Select TWO

• A. Price of the materials
• B. Lead-time of the materials
• C. Current inventory levels
• D. Materials required to complete an order

Answer: C,D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ABOM explosuredetermines net requirements by expanding theBill of Materialsfor an order and offsetting it againstcurrent inventory/receiptsto find what must be procured or made. Prices and lead times are relevant for scheduling/costing, not for the netting calculation itself. (CIPS L5M10 Study Guide, p. 182)

NEW QUESTION # 17
Cleo Manufacturing has introduced a new Electronic Data Interchange (EDI) system. Which of the following is an advantage of using this technology?

• A. It replaces emails
• B. It simplifies the supply chain
• C. It allows humans to check the work for accuracy
• D. It is cheap to introduce

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
EDI automates structured, computer-to-computer exchange of business documents (e.g., POs, ASNs, invoices), replacing manual, error-prone channels such as emails and paper and reducing rekeying/latency. It typically requires investment and integration effort; it does not remove the underlying supply chain complexity, and by design reduces-not adds-manual human checking. (Reference: CIPS L5M10 Study Guide, EDI-purpose and benefits, p. 81)

NEW QUESTION # 18
Dasap Group Ltd has hired a third-party logistics organisation (3PL) to manage some aspects of their business. Which of the following business functions would you expect a 3PL company to manage on behalf of Dasap Group Ltd? Select THREE.

• A. Manage the delivery of items through a transport fleet
• B. Management of customer complaints
• C. Operation of the distribution centre
• D. Management of the receipt of customer orders
• E. Production of sales reports

Answer: A,C,D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
A3PL (Third-Party Logistics)provider can manage operational logistics functions such asorder receipt and processing,distribution centre operations, andtransport management(fleet, routing, delivery). Customer complaints and sales reports remain the client's responsibility.
(Reference: CIPS L5M10 Study Guide, Outsourced logistics and 3PL services, p. 33)

NEW QUESTION # 19
A Master Production Schedule (MPS) will create a production plan for an item over a period. Which sources will the MPS take information from? Select THREE

• A. Price of the materials
• B. Company balance sheet
• C. Firm customer orders
• D. Current stock levels
• E. Forecast demand

Answer: C,D,E

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheMPSis driven byforecast demand,firm customer orders, andcurrent inventory/availabilityto decide what, how much, and whento make. Financial statements and prices are not direct inputs to the MPS. (CIPS L5M10 Study Guide, p. 180)

NEW QUESTION # 20
What is the name given to an additional file attached to an inventory file that links a requirement to the specific order or component that triggered it?

• A. Requirement record
• B. Peg record
• C. Bill of materials
• D. CSV file

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Apeg recordprovides "pegging," i.e., a traceable link betweendemand(e.g., a customer order/MPS line) and the specificsupplycreated to satisfy it. (CIPS L5M10 Study Guide, p. 186)

NEW QUESTION # 21
Blue Toes Inc. conducts a Cost-to-Serve analysis and identifies customer "Pink Nose" as low-cost-to-serve and high-value. Which strategy should they apply?

• A. Build
• B. Cost engineer
• C. Danger zone
• D. Protect

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheCustomer Profitability Matrix(Christopher, 1998) identifies "Protect" forhigh-value, low-cost-to-serve accounts - focusing on retention and maintaining satisfaction.
(Reference: CIPS L5M10 Study Guide, Customer Profitability Matrix, p. 62)

NEW QUESTION # 22
Which of the following is a commonly used indicator for measuring capacity and manufacturing productivity and is usually expressed as the percentage of time a machine is truly productive?

• A. Actual output
• B. Overall Equipment Effectiveness
• C. Machine downtime
• D. Effective Operational Measure

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Overall Equipment Effectiveness (OEE) combines availability, performance, and quality to indicate how much of scheduled time a resource is genuinely productive. Downtime is a component that reduces OEE;
"actual output" is an absolute measure, not an effectiveness percentage. (Reference: CIPS L5M10 Study Guide, OEE definition, p. 109)

NEW QUESTION # 23
Which of the following items can be classed as inventory? Select THREE

• A. Finished goods
• B. Transport vehicles
• C. Warehouses
• D. Components
• E. Work in progress

Answer: A,D,E

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Inventory in logistics and supply chain management refers to goods held for sale or for use in producing goods for sale, at any stage of completion. This includes raw materials/components, work-in-progress (WIP), and finished goods. Physical assets such as warehouses or vehicles are not inventory; they are resources
/capacity assets. (Reference: CIPS L5M10 Study Guide, Section on "The role of logistics and inventory," p. 3)

NEW QUESTION # 24
Which of the following standards apply to the use of RFID and other digital data structures regardingpersonal privacy and data collection?

• A. ISO 14001
• B. ISO 20400
• C. ISO 20248
• D. ISO 9001

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ISO 20248definesdata structures and digital signature meta-structuresfor AIDC technologies like barcodes and RFID, addressing authentication, privacy, and traceability.
(Reference: CIPS L5M10 Study Guide, RFID standards and compliance, p. 85)

NEW QUESTION # 25
Which of the following statements about Sales and Operations Planning (S&OP) are TRUE? Select TWO

• A. It is a fundamental financial plan to ensure business profitability in relation to supply and demand
• B. It is a cross-functional activity
• C. Competitors' behaviour is not accounted for in Sales and Operations Planning
• D. It is a process of planning future aggregate resource levels so that supply will balance with demand

Answer: B,D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
S&OP aligns aggregate demand and supply by planning future resource levels, typically on a rolling monthly cycle. It is explicitly cross-functional, involving operations/logistics, marketing/sales, finance, and HR to reconcile a single plan. While finance input is important, S&OP is not merely a financial plan, and external factors-including competitor actions-are considered in demand assumptions. (Reference: CIPS L5M10 Study Guide, S&OP overview, p. 112)

NEW QUESTION # 26
Which governing body is responsible for the creation and management of Incoterms rules?

• A. United Nations
• B. World Trade Organization
• C. International Chamber of Commerce
• D. International Labour Organization

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Incoterms are published and maintained by the International Chamber of Commerce (ICC) to define buyer
/seller responsibilities for delivery, risk, and costs under international sales contracts. (Reference: CIPS L5M10 Study Guide, Incoterms governance, p. 7)

NEW QUESTION # 27
Which of the following areadvantages of using an ERP systemover an MRP system? Select TWO.

• A. Centralised databases
• B. System is multi-lingual
• C. No inputs are required
• D. Cheaper to implement

Answer: A,B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ERP extends the MRP concept across the whole enterprise. It centralises data (reducing duplication and error) and supports multiple languages and currencies for global operations. It is, however, more complex and costly to implement than MRP.
(Reference: CIPS L5M10 Study Guide, ERP evolution from MRP, pp. 175-176)

NEW QUESTION # 28
Which of the following sentences is true about NVOCC (Non-Vessel Operating Common Carrier) operators?

• A. They own all of their own shipping vessels
• B. They undertake transportation by air, land, or water
• C. They are generally cheaper to use than traditional logistics companies
• D. They provide documentation such as the Bill of Lading

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
An NVOCC functions as a legal carrier issuing Bills of Lading but doesnotown or operate vessels. They arrange shipping with vessel operators on behalf of clients. Their role focuses on consolidation, documentation, and legal responsibility for the cargo. (Reference:CIPS L5M10 Study Guide, Maritime logistics and NVOCC, p. 43)

NEW QUESTION # 29
Patrick wants a tool that can visually display information on planning, scheduling and track production activities within a distribution centre. Which would best suit his requirement?

• A. Critical Path
• B. Gantt Chart
• C. Linear Programming
• D. PERT Analysis

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
AGantt chartvisually maps activities over time forplanning and scheduling, showing task durations, overlaps and progress tracking. Critical Path/PERT are network methods for project timing; linear programming is an optimisation technique. (CIPS L5M10 Study Guide, pp. 125-128)

NEW QUESTION # 30
A detailed list of a ship's cargo, issued as a receipt by the master of the ship to the person consigning the goods, is known as which document?

• A. Certificate of Origin
• B. Bill of Lading
• C. Customs Declaration
• D. EUR1 Form

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
A Bill of Lading (B/L) serves as both a receipt for shipped goods and a document of title. It confirms carriage terms between shipper and carrier and is critical in international freight documentation. (Reference:CIPS L5M10 Study Guide, "Key transport documents," p. 44)

NEW QUESTION # 31
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